Research Proposal on "US Environment of Internationalization of Oasis Bicycle"
Research Proposal 3 pages (1032 words) Sources: 8 Style: Harvard
[EXCERPT] . . . .
Oasis BicycleThe theoretical company "Oasis Bicycles" is one of the biggest manufacturers of bicycles in the world, so it can reasonably be assumed that they are a firm operating on a mass market strategy, likely cost leadership. When Oasis seeks to move into the U.S. market, it will need to analyze the market from the perspective of entering the market in this segment. This analysis will take the form of a Porter's Five Forces analysis, which seeks to identify the attractiveness of a given market by analyzing a set of competitive variables -- buyer power, supplier power, threat of new entrants, threat of substitutes and intensity of rivalry (Porter, 1980).
Buyer Power
There are a variety of buyers in the industry. For a new market entrant with no brand equity, the key buyers are the retailers who will get the bikes to the public. Mass market retailers make up the largest component of the channel, accounting for 74% of bicycles sold (approximately 13.6 million bikes based on 2008 statistics). The low average selling price of $80 results this channel representing just 35% of dollar sales, and correspondingly tight margins (National Bicycle Dealers Association (NBDA, 2008). Sales were split across a wide range of bicycle types, the largest being mountain bikes with a 28.5% share. Other channels include specialty bike shops (17%), chain sporting goods stores (6%) and other (3%) (NBDA, 2008).
Oasis is likely to target the mass market retailers for its bicycles. These retailers have strong buying power for several reasons. Their buying volume is vital to Oasis' ability to penetrate the market. These buyers, including Wal-Mart and Targ
download full paper ⤓
Supplier power is relatively low for Oasis. As one of the world's largest bicycle manufacturers, Oasis does high volumes, giving them some power of their suppliers. Moreover, the inputs are not sufficiently differentiated at the low end to lend suppliers power, and there is an ample supply of inputs available from producers around the world. Oasis may need to move production out of the EU, however, where local bike part suppliers are protected. Access to Chinese parts, for example, will require a facility outside of the EU (Bike Europe, 2007).
The threat of new entrants is high, as barriers to entry are relatively low. While there are absolute cost advantages, it is not difficult to build market size in the bicycle industry, since there are many strong markets around the world in which to operate. There is a low proprietary learning curve, very little adverse government policy, relatively low capital requirements, little threat of retaliation and ample access to distribution. Moreover, the U.S. market has become much more open since a series of decisions by market leader Schwinn decreased its market share, allowing other firms to enter the market (Upham, 2006)
The… READ MORE
Quoted Instructions for "US Environment of Internationalization of Oasis Bicycle" Assignment:
Subject:International business policy & strategy
Assignment brief:
The Oasis Bicycles Com is based in taiwan and designed in the Uk and made in Netherlands-a global company.
the oasis-one of the world's biffest bicycle manufacturers with annual sales of around USD 400 million-93 per cent outside Taiwan.
Now oasis is tring to enter the US Market.
I need to conduct a Porters Five Forces Analysis on the US market and justify why you feel US is the best match Oasis's strategic aims and purpose. the emphasis of the analysis should be on suggesting how to best enter US environment.
How to Reference "US Environment of Internationalization of Oasis Bicycle" Research Proposal in a Bibliography
“US Environment of Internationalization of Oasis Bicycle.” A1-TermPaper.com, 2009, https://www.a1-termpaper.com/topics/essay/oasis-bicycle-theoretical-company/9288. Accessed 5 Oct 2024.
Related Research Proposals:
United States Investing Too Much in WMD A2 Coursework
United States investing too much in WMD protection
Is the United States investing too much time and money in WMD protection?
America has made massive investments of their resources towards… read more
A2 Coursework 4 pages (1551 words) Sources: 5 Topic: Military / Army / Navy / Marines
USA Intervention of Central America Essay
S., the American foreign policies for many years are looking to soften the historic reputation in the region by deferring negotiations to Central American diplomats. One case which led to… read more
Essay 5 pages (1427 words) Sources: 4 Topic: Latin America / Mexico / Caribbean
United States Steel Corporation Research Paper
United States Steel Corp v. Commissioner
In United States Steel Corporation v. Commissioner, the court was called upon to determine that appropriate way of allocating additional income to a corporation… read more
Research Paper 6 pages (2304 words) Sources: 6 Topic: Business / Corporations / E-commerce
United States Government Is a Republic Term Paper
United States Government is a Republic, formed on democratic principles. This means that the United States operates under a system of democracy that is "for the people, by the people."… read more
Term Paper 2 pages (717 words) Sources: 1 Style: APA Topic: American History / United States
US Patriot Act Term Paper
USA Patriot Act
The purpose of this paper is to research the "USA Patriot Act" and examine exactly what the implications are in the implementation of this act should another… read more
Term Paper 5 pages (1258 words) Sources: 1+ Topic: American History / United States
Sat, Oct 5, 2024
If you don't see the paper you need, we will write it for you!
We can write a new, 100% unique paper!